Paper 1

1: a: If the closing stock is given in trial balance what will be its effect on profit and loss account and on Balance Sheet and why?
b: If the depreciation is given in trial balance what will be its effect on profit and loss account and on Balance sheet and why?

2: Prepare Bank Reconciliation Statement as on 31 march (amounts yaad nhn)
Balance as per cash book (Dr.)

A: Cheque sent for collection but not collected by bank.
B: Cheques issued but not presented in bank.
C: Interest credited by bank but not recorded in cash book.
D: Dividend collected by bank but intimation was received on Ist April.
E: Bank charges debited by bank but not recorded in cash book.
F: Cheque issued to a trader but not presented upto 31 march.

3: Prepare balance sheet from trial balance net profit was given. Adjustments were:
A: Salaries not paid or accrued salaries
B: Prepaid insurance.
C: 5% provision on doubtful debts (Only Sundry Debtors was given in trial balance)
D: 20% depreciation on machinery and furniture.

4: Debtor Control Account and Creditor Control Account?